Examine rival claims of Delhi, Haryana for allocation of Dadri-II power: HC to Centre

The Delhi High Court on Wednesday asked the Centre to examine and take a decision on the rival claims of Delhi and Haryana concerning the allocation of power generated by the Dadri-II thermal plant and also explore avenues to safeguard the interests and projected needs of the national capital as well as its neighbouring State.

The court said its interim order staying the Centre's decision concerning the transfer of the power from by the National Thermal Power Corporation Limited's thermal power station to Haryana from Delhi shall continue till the Ministry of Power (MoP) takes a final decision.

Justice Yashwant Varma urged the MoP to hear all the concerned parties and proceed with due expedition bearing in mind the fact that the allocation in favour of Haryana is restricted to October 2022 and it is stated to be facing severe power outages.

The order was passed by the court while dealing with the aspect of the vacation of the interim order passed on the petition by BSES Rajdhani Power Limited on March 30. A writ petition challenging the transfer of allocation was also filed by Tata Power Delhi Distribution Limited.

“Upon an overall consideration of all of the above, it would appear to be expedient to require the MoP to examine the rival claims, consider the validity of the asserted right of the petitioners and GNCTD for continued allocation of Dadri-II power, and explore avenues which may safeguard the interests and projected needs of the two States and take an appropriate decision based on a holistic examination of all the facts that may be placed before it,” the court said.

“The Court requests MoP to invite all concerned parties and to proceed further in light of the observations…. The interim order of 30 March 2022 shall continue till such time as the MoP takes a final decision in light of the liberty accorded by the Court as noted above. Bearing in mind the urgency and the shortage of power as canvassed by HPPC, the Court further requests the MoP to proceed in the matter with due expedition bearing in mind the fact that the allocation in favor of the State of Haryana is itself restricted to October 2022 and is stated to be facing severe power outages,” the court stated.

In its 53-page order, the court asserted that there was an “emergent need” to examine and balance the interests and requirements of two competing entities i.e. Delhi and the State of Haryana, and the MoP was the competent authority to examine and consider their respective case for allocation of power generated by Dadri II and pass an appropriate order.

The court observed that the exercise of balancing would entail evaluation and examination of various factual aspects including the data concerning the demand of respective States, the availability of alternate sources to meet exigencies, and the likely cost burden to be borne by the respective States and other germane considerations.

The Centre, represented by additional solicitor general Chetan Sharma, argued that the authority to allocate power from Central Generating Stations lies solely and exclusively within the domain of the Union Government and that the Delhi government has, on July 6, 2015, permanently surrendered its allocated power from Dadri-II and it was not the first time that such reallocation was being done.

BSES, represented by senior advocate Sandeep Sethi, submitted that the temporary allocation and surrender of Dadri-II power which occurred between 2015 and 2020 cannot be viewed as a permanent surrender of power by the DISCOMS.

The court listed the case for further hearing on October 10 and said that its observations are not to be construed as a final expression of opinion.

The high court, on March 30, had stayed the Centre's order on the transfer of power supply from the Dadri-II thermal station to Haryana. The petitioner discom has earlier claimed that the order is completely without jurisdiction and if implemented, 23 per cent of the populace of the national capital would be deprived of power in the next 24 hours. The petitioner has argued that the respondent authorities have no power to reallocate power that forms part of the allocation made in favour of the petitioner and duly approved by the Delhi Electricity Regulatory Commission.

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